The Study of Fdi Strategy for Lenovo Group

2823 Words Jun 13th, 2013 12 Pages
Business School

The study of FDI strategy for Lenovo Group

Module Title: International finance and investment
Module NO: 56357
Level: 7
Module Leader: Dr. Peijie Wang
Student ID: 200900219
Text Word count: 2600
Submission Date: 05/04/2011

Introduction

The Lenovo Group
Lenovo Group is committed for superior personal computer creating, the company based on the business model which is oriented for innovation, high efficiency and the customer satisfaction, besides the company is also actively entering the new market. The Group is formed by Lenovo Group and the former business division of IBM Personal Computer that to undertake the creation, manufacturing as well as to sale reliable, high quality, safe-to-use technology
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It thus can be seen that the quality of location choice is relating to the quality of running for the future development of a multinational company; therefore, when a company would like to extend its business to the global that the manager should take full into account which countries deserve to invest and establish branch institutions over there before they make a decision.

Entry modes for Lenovo group- Basically, there are three major modes of foreign market entry, which are FDI, exporting and licensing ( Wang.P, 2009). The theory is stated by Wang.P (2009) that “FDI is one of the three major modes of foreign market entry as well as doing business in the foreign land” (Wang. P, 2009, P404). Apart from this, exporting is the marketing and direct sale of domestically produced goods in a foreign country. This kind of entry modes are always applied by essential goods manufacturers, because this mode could save a lot of money where the country is unnecessary to be

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